Finance question
Can I refinance a balloon payment I can't pay?
Yes. Rather than finding a large lump sum when your loan ends, the balloon or residual can usually be refinanced into a new facility and repaid over time. The asset keeps securing it, so the switch is often quick and low-doc.
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The short answer
Refinance the balloon, skip the lump sum
A balloon, or residual, is the large final amount owed at the end of an equipment or vehicle loan. It keeps earlier repayments low, but it falls due as one lump sum. If paying it outright is not realistic, refinancing turns that lump into a fresh facility you repay over a new term, so you keep the asset without emptying the bank account to do it.
The asset you already own carries the deal. Because the equipment or vehicle still holds value and secures the loan, a lender can refinance the residual much like any asset finance. That usually means limited paperwork and a fast turnaround, which matters when the balloon is close to due. The remaining value in the asset is what gives the new lender the comfort to take it on.
Timing is everything with a balloon. Leaving it to the last week narrows your options and adds pressure. Bringing it to a broker early lets us shop the residual across 40+ lenders and line up the replacement facility before the deadline, not after. If the balloon is still months away, there is time to compare properly and pick the cleanest structure.
Do you qualify?
What makes a balloon refinance work.
The asset itself
A vehicle or machine that still holds value.
The residual amount
The balloon figure due at the end of the loan.
Time before it falls due
The earlier we start, the more options you have.
An active ABN
Sole traders and companies both qualify.
Why a balloon does not have to be a wall
Spread, not lump
The residual becomes a new facility repaid over time, not one hit.
The asset still secures it
Value in the equipment lets a lender refinance the balloon.
Fast when it counts
Asset-secured refinances can move quickly as the deadline nears.
A real example
A ute loan ends with an $18,000 balloon the owner cannot pay in one go. The vehicle still holds value, so the residual is refinanced into a new term at a workable monthly repayment, and the deadline passes without a scramble. Illustrative only.
Common questions
Frequently asked questions
What is a balloon payment?
It is the large final amount owed at the end of an asset loan, which keeps earlier repayments lower.
Can any balloon be refinanced?
Most can, provided the asset still holds value. It is subject to lender assessment.
How fast can it be arranged?
Asset-secured refinances often move quickly, but starting before the due date gives the most room.
Do I need a deposit?
Usually not, since the asset secures it, though a deposit can help in some cases.